Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

College Accounting > Test 1 > Flashcards

Test 1 Flashcards

1
Q

what is accounting

A

the language of business; a system of maintaining records of a companies operations and communicating that information to decisions makers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is financial accounting

A

accounting information for external users; public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is managerial accounting

A

accounting information for internal users’ inside people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are assets

A

resources of a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

examples of assets

A

cash, land, supplies, equipment, inventory, accounts receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are liabilities

A

amount owed to creditors; debts; obligations/promises to others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

examples of liabilities

A

notes payable, accounts payable, (anything payable?)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is stockholders equity

A

owners claim to resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

examples of SHE

A

Common Stock, retained earnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the accounting equation

A

Assets= liabilities+SHE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is a revenue

A

sales of products or services to customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are expenses

A

costs of selling products or services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is the net income equation

A

Revenues-expenses= net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are dividends

A

distribution of profit to stockholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is an income statement

A

reports the company’s revenues and expenses over an interval of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is the statement of stockholders equity

A

summarizes the changes in stockholders equity over an interval of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is stockholders equity

A

=common stock+retained earnings, dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is a balance sheet

A

presents the financial position of the company on a particular date; claim to resources; assets, liabilities, SHE, common stock, retained earnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are statements of cash flows

A

measures activities involving cash receipts and cash payments over an interval of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what are operating cash flows

A

cash transactions involving revenues and expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what are investing ash flows

A

cash transactions involving purchase and sale of long term assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

financing cash flows

A

cash transaction involving leaders and stockholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

accounts affected; issue common stock for 25000 to obtain the funds

A

common stock

cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

accounts affected; borrows 10,000 for bank and a sign note

A

notes payable, cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

accounts affected; purchase equipment using 24,000 cash

A

cash, equipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

accounts affected; pay one year rent in advance 6,000

A 
prepaid rent (asset account), 
cash
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

accounts affected; provide training to customers for cash 4,300

A

cash, service revenue

28
Q

group 1 of debit/credit rules

A

increase by debit, decrease by credit; assets, expense, dividends

29
Q

group 2 of debit/credit rules

A

decrease by debit, increase by credit; liabilities, stockholders equity; common stock, retained earnings, revenues

30
Q

revenue recognition principle

A

revenues are recorded in the period in which the goods or services are provided to customers

31
Q

expense recognition principle (matching period)

A

expenses are reported in the same period as the revenues they help to generate

32
Q

accrual basis revenue recognition

A

when goods and services are provided to customers

33
Q

cash basis revenue recognition

A

when cash is received

34
Q

accrual basis expense recognition

A

in the period costs are used to help produce revenues

35
Q

cash basis expense recognition

A

when cash is paid

36
Q

who is/isnt apart of GAAP

A

accrual basis is, cash basis is not

37
Q

what are prepaid expenses

A

pay cash (or have an obligation to pay cash) to purchase an asset in the current period that will be recorded as an expense in a future period

38
Q

what are deferred revenues

A

receive cash in the current period that will be recorded as revenue in a future period; originally a liability because there is an obligation the customer

39
Q

what are accrued expenses

A

record an expense in the current period that will be paid in cash in a future period

40
Q

interest formula

A

borrowed money x %interest x (1/12)

41
Q

what is depreciation

A

cash paid for equipment; decrease in usefulness

42
Q

deposit outstanding

A

cash receipts of the company that have not been added to the bank’s record of the company’s balance

43
Q

checks outstanding

A

checks the company has written that have not been subtracted from the bank’s record of the company’s balance

44
Q

cash transactions

A

recored by bank but not by company

45
Q

retained earnings

A

represents the cumulative amount of net income earned over the life of the company that has not been distributed to stockholders as dividends

46
Q

bank reconciliation

A

marches the balance of cash in the bank account with the balance of cash in the company’s own words

47
Q

order of financial statements being prepared

A

income statement, SHE, balance sheet

48
Q

GAAP

A

the body of rules and procedures that guide the measurement and communication of financial accounting information in the United States

49
Q

Financial accounting standards board

A

where financial accounting and reporting standards in the United States are established

50
Q

measuring process transactions

A

using source documents to analyze accounts affected, recording transactions, analyzing transactions for their effects on the accounting equation

51
Q

order of measuring process transactions (whole thing)

A

using source documents to analyze accounts affected, analyzing transactions for their effect on the accounting equation, recording transactions in journal, general ledger (posting), trial balance, make adjusting entries, adjusted trial balance, prepare financial statements, closing temporary account

52
Q

is deferred revenue an asset, liability, or SHE

A

liability

53
Q

which of the accounts are decreased on the debit side and increased on the credit side

A

liabilities, common stock, revenues

54
Q

which of the accounts are increased on the debit side and decreased on the credit side

A

assets, expense, dividends

55
Q

which would normally have a debit balance

A

cash, delivery expense, dividends; all increase by debit

56
Q

what does utilities expense do

A

increases with debits

57
Q

what are accounts payable, service revenue, and common stock apart of

A

credit

58
Q

posting transactions to T-Accounts involve

A

transferring debit and credit information form the journal to the accounts in the general ledger

59
Q

what does a trial balance represent

A

list of all accounts and their balances at a particular date to ensure that debits equal credits

60
Q

what does matching principles state

A

all costs that are used to generate revenue is recognized

61
Q

why is a bank reconciliation necessary

A

the company has transactions that the bank has not recorded, the bank has transactions that the company has not recorded, reconciliations provide a control over cash

62
Q

deposit outstanding would be placed…

A

added to the bank’s cash balance

63
Q

bank reconciliation and interest

A

add interest to company

64
Q

bank reconciliation and service charge

A

subtract service charge to the company balance

65
Q

bank reconciliation and NSF checks

A

subtract checks form the company’s balance

66
Q

bank reconciliation and deposits

A

add deposits outstanding to the banks balance

College Accounting (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions